Willson Company has developed value added standards for four activities purchasing parts, assembling parts, administering parts, and inspecting parts The activities, the activity driver, the standard and actual quantities, and the price standards follow for 2018:
 

Activities Activity Driver SQ AQ SP Purchasing parts Assembling parts Administering parts Inspecting parts Orders 1,500 $300 2,100 199,500 Labor hours 180,000 12 Number of parts Inspection hours 18,000 25,800 110 75,000 15 The actual prices paid per unit of each activity driver were equal to the standard prices. Required 1. Prepare a cost report that lists the value-added costs, non-value-added costs, and actual costs for each activity. 2. Which activities are non-value-added? Explain why. Explain why value-added activities can have non-value-added costs.